MINISTRY OF EDUCATION THE STATE BANK OF VIETNAM AND TRAINING BANKING ACADEMY INTERNATIONAL BUSSINESS TRAN THI THANH PHUONG THE LEGAL FRAMEWORK FOR ANTI - DUMPING IN THE UNITED STATES - SOME RECOMMENDATIONS FOR VIETNAMESE ENTERPRISES Major: International Business Student ID: 18A4050187 Supervisors: MSc. DINH THI THANH LONG HA NOI - 2019 COMMITMENT This thesis is my own research work, conducted under the scientific guidance of lecturer Dinh Thi Thanh Long. To write this paper, I based on official documents of the cases (for example the related documents published by the U. International Trade Commission and Department of Commerce) and other sources such as news articles and academic papers.
The data and the research conclusions presented in this thesis are completely honest. I certify that I have never committed any copyright. Student Phuong Tran Thi Thanh Phuong ACKNOWLEDGEMENT What an incredible journey to reach the success of this exciting adventure. During the process of conducting my thesis, I received many supports and helps from my lecturer.
I am truly thankful to MSc. Dinh Thi Thanh Long, whom I was extremely fortunate to have as an academic advisor. She has been a source of inspiration, a role model, a mentor, a pillar of strength during challenging times, always supportive and so much more. This of course, is in addition to her extreme dedication to her students, her high level of expertise and knowledge of a wide variety of fields as well as the academic world at large.
She was able to keep me on a focused research path in spite of my sometime wild tangents, and ensured a rigorous research process. Her thorough and thoughtful feedback on earlier drafts never ceased to amaze me as well as her patience. Without her instructions, the thesis would have been impossible to be done effectively. Ha Noi, May, 2019 Phuong Tran Thi Thanh Phuong LIST OF TABLES No.
Table name Page Table 2.1 The sequence of event time in an anti - dumping investigation.2 The anti - dumping duty rates of catfish through POR 32 Table 2.3 The anti - dumping duty rates of the first and second revision 33 Table 2.4 The anti - dumping duty rates of the third revision 33 AN ABBREVIATION LIST AD Anti - dumping CFA Catfish Farmers of America NME Non - market economy SSA The South American Shrimp Alliance DOC The US Department of Commerce ITC The US International Trade Commission VASEP The Viet Nam Association of Seafood Exporters and Producers VCA The Viet Nam Competition Authority TABLE OF CONTENT INTRODUCTION. The necessity of the subject. Object and scope of the study. Methods of research.
Structure of the thesis .7 CHAPTER 1: AN OVERVIEW OF ANTI - DUMPING. An overview of Anti - dumping. Definition of the dumping and anti - dumping. The cause of dumping.
Impact of dumping. Purpose of anti - dumping. Anti - dumping duty. A legal framework for anti - dumping activities.
Conditions for application of anti - dumping measures. Determining the “injury” factor. A "Lawsuit" anti - dumping. Basic features of anti - dumping proceedings.
An anti - dumping lawsuit steps:. 14 CHAPTER 2: THE ANTI - DUMPING CASE FRAMEWORK. The US anti - dumping legal framework. Participants in antidumping procedures.
Overview of the US anti - dumping (AD) process:. The US anti - dumping measures. Anti - dumping cases between the US and Viet Nam. The catfish case.
The frozen warm - water shrimp case. Build up a strong brand. Understand the international legal system. Take advantage of the power of association.
Develop an early warning mechanism. 40 CHAPTER 3: RECOMMENDATIONS FOR. 41 VIETNAMESE EXPORTING ENTERPRISES. Recommendations for Vietnamese enterprises.
Recommendations to limit anti - dumping lawsuits. Recommendations when enterprises are sued. Recommendations when enterprises are lossed. Recommendations for the Government.
Recommendations for Ministry of Industry and Trade. Recommendations for Business associations. The necessity of the subject In the context of globalization, integration, and participation in international economic organizations is an inevitable trend for each country in its economic development process. For developing and underdeveloped countries, international economic integration is the best way to shorten the lagging gap compared to other countries and have the conditions to further promote its comparative advantages in the division of labor and international cooperation.
Recognizing that, Vietnam has taken a proactive approach and actively integrated into the international economy. We have established trade and investment relations with many countries and territories, participated in many economic and trade cooperation organizations in the world and signed many bilateral and multilateral free trade agreements. This helps Vietnam's trade turnover have outstanding growth and contribute significantly to the GDP of the country. WTO accession and deep integration into the international economy have opened up Vietnamese enterprises a great opportunity to penetrate new, large and attractive markets, especially for the US market.
However, the US is also a risky market, with different types of barriers, especially for the noticeable anti - dumping. According to WTO statistics, the United States is among the countries using this tool the most for importing foreign goods. For many Vietnamese enterprises, suing anti - dumping in this market is not only a risk. Since the first US anti - dumping investigation of Vietnamese goods in 2002, we have so far encountered many anti - dumping investigations in the US, including very large cases, seriously affecting exporting businesses, suppliers and workers such as the frozen filet catfish investigation in 2002 and the warm-water shrimp in 2003.
It is clear that anti - dumping measures are a challenge of liberalization. The fairness and rationality of survey results and anti - dumping measures will be a long and controversial story, especially in the context that Vietnam has not yet been recognized by the US as a market economy. In the immediate future, businesses still have to accept "living together" with the risk of anti - dumping from the US. An anti - dumping (AD) is a multi-dimensional issue and an effective response requires an understanding of 1 politics, economics, laws, institutions, and communications.
Therefore, practical research on the use of the US AD tools helps Vietnamese businesses anticipate the impacts and effect to their export goods, and thus they can take a more proactive response. Thesis "The legal system of anti - dumping in the United States - Remarks for Vietnamese enterprises" studies the guidelines and actions of the US in the use of anti - dumping tools with imported goods from abroad as well as impacting on Vietnam's exports. Thereby, it proposes a number of solutions to help Vietnamese exporters export to the US market to limit the negative effects of anti - dumping policies. Foreign studies Though it is difficult to define 'dumping' in the same way that is universally acceptable.
There has been a lot of studies on it. It is often taken to mean: the sale of a commodity in a foreign market at a price below marginal cost [Bannock, Baxter and Rees, 1978]. Early literature on dumping defined it as "price discrimination between national markets" [Viner, 1923]. While Ethier (1982) brought up the theory of cyclical dumping, i.
that if a product demand of the future market is uncertain, or the domestic economy is in recession, it could be dumped to the foreign market with low prices, which might be lower than the cost. After that, more literature recognizes dumping to occur either when "similar products are sold by a firm in an export market for less than what is charged in the home market" or when "the export price of the product is less than total average costs or marginal costs" [Hoekman and Leidy, 1989]. These two business practices (price discrimination and pricing below costs) have also been identified by Baldwin (1998) to constitute dumping: "sales in international markets by foreign producers either at prices less than they charge in their home markets or at prices below their costs of production." Finger (1993) is of the opinion that "there is nothing particularly interesting in the economic definitions of dumping" as they "do not provide a sound basis for determining when it is or when it is not in the national interest to restrict trade." Following him, the pragmatic definition of dumping is the following: dumping is whatever you can get the government to act against under the antidumping law. The use of the term ‘dumping' is also being increasingly extended to connote unfair trade practices of different kinds.
2 Bhala's "Rethinking antidumping law" study (2002) summarized many points for schools of opposition to using anti - dumping methods. The author analyzed the economic aspect of anti - dumping behavior and since then, there have been many cases where enterprises sell goods at low prices not to unfairly compete but mainly to solve situations, a common situation in business. However, this study only wants to prove that there is no need to have world-class anti - dumping tools because of its anti-competitive, free trade restrictions. In fact, in the case of other countries still apply anti - dumping tools, one country needs its own anti - dumping policy.
The study "Anti - dumping: A developing country perspective" by Reem Raslan (2009) gave an overall assessment of the theoretical and practical aspects of countries' anti - dumping policies and concludes that developing countries are increasingly being treated unfairly in international trade if anti - dumping tools become more and more popular. The study of "Antidumping agreement and Developing countries" by Aradhna Aggarwal (2007) analyzed the main contents of the WTO anti - dumping and points out the disadvantages of developing countries in implementing the Agreement. The study also described the current status of the use of anti - dumping policies of developing countries, while analyzing the legal aspects of law enforcement and the enforcement of anti - dumping laws by authorities. The "Antidumping" study of Bruce A.Blonigen and Thomas J.Prusa (2001) evaluated the anti - dumping tools as the strongest barrier in international trade between 1975 and 2000.
The evidence is from 1980s, GATT, WTO members who have submitted more than the anti - dumping complaint than all other trade lawsuits combined. Around the world, the annual anti - dumping cases were more than the sum of the same cases during the period 1947 to 1970. The study also pointed out that, up to the mid-1980s, most of the anti - dumping lawsuits in the world came from four major countries including the United States, the European Union, Australia, and Canada. Therefore, some anti - dumping lawsuits were used by WTO member countries to protect domestic production.
This research showed that the motives of anti - dumping lawsuits included both economic and political motives. It also described in detail the direct and indirect economic impacts of the anti - dumping tool with both the importing country and the exporting country. The study "The use of antidumping in Brazil, China, India and South Africa - Swedish Rules, trends and causes" (2006) studied the anti - dumping policies 3 of some developing countries and point out that the trend of using anti - dumping tools in these countries is becoming increasingly popular. The main reason was supposed that with international trade practices, these countries were facing with a lot of anti - dumping lawsuits in export markets, so they had to increase the use of anti - dumping tools as a commercial safeguard and retaliation measures.
In addition, the study also affirmed that the increased use of anti - dumping policies brings many economic benefits to these developing countries. "Policy externalities: How US antidumping affects Japanese exports to the EU" by Chad P. Bown and Meredith A.